US readies repeal of methane rules for oil sector
President Donald Trump's administration says it could rescind requirements for oil and gas companies to reduce their emissions of methane, a potent greenhouse gas, by the end of next month.
The US Environmental Protection Agency (EPA) on 29 May submitted its final rule on the methane standards for internal review, according to a court filing today. If the White House Office of Management and Budget approves a request to expedite internal review, the agency anticipates it can finalize the rule by the end of July.
Oil and gas companies have been complying with the methane restrictions since 2016. The rule was the last major climate regulation issued under former president Barack Obama, but it only applied to new and heavily modified facilities. Those facilities were required to install low-emissions equipment, look for methane leaks and make timely repairs.
The Trump administration's efforts to scrap the methane regulations has split the oil and gas sector. Leading industry trade groups have pushed to scrap the methane rules because of concerns about the cost. But Shell, ExxonMobil and other major companies have opposed scrapping the rules. They worry it will damage their image at a time the industry is attempting to show its commitment to addressing climate change. Methane emissions from oil and gas companies account for about 3pc of US greenhouse gas emissions.
The EPA in its repeal proposal argued that the Obama administration's decision to directly regulate methane was unnecessary, since methane was already controlled indirectly through existing rules targeting volatile organic compounds. But critics say that approach would fail to cover some new sources and exempts thousands of existing oil and gas facilities that account for most of the industry's emissions.
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Singapore’s SP to launch 240MW solar project in China
Singapore’s SP to launch 240MW solar project in China
Singapore, 6 September (Argus) — Singapore's state-owned utility SP plans to start up a 240MW peak (MWp) agrivoltaic project in Guangdong province's Huizhou city, which will be fully operational by the end of this year. MWp refers to the maximum power output potential a solar farm has when reaching ideal conditions. SP expects the project to generate 7.5bn kWh of green electricity over the next 25 years, reduce coal use by 920,000t and avoid 4.46mn t/yr of carbon emissions. The project's solar installation capacity is 240MW, and marks SP's largest solar investment in China, the company said on 5 September. SP has secured 1.45GW of solar projects in China to date, spanning 18 provinces and municipalities. SP in May also partnered with China environmental technology solutions provider Qingdao Daneng Environmental Protection Equipment to invest and build a 90MW aquavoltaic farm in Qingdao city. This will power a green hydrogen facility in Qingdao, likely referring to Chinese refiner Sinopec's 4,500 t/yr facility . The solar project has an investment value of over 76mn Singapore dollars ($58.5mn) and is on track to connect to the grid by the end of the year. SP expects it to produce 162mn kWh/yr of green electricity and reduce carbon emissions by 160,000 t/yr. The operational model will incorporate renewable energy generation, grid integration, demand-side management, and energy storage. SP's first investment in solar assets was in June 2023, for 78MWp of agrivoltaics assets across four agricultural sites in the Dabu county of Meizhou city in Guangdong province. The project will generate 91.3GWh/yr of clean electricity, and reduce coal usage by almost 30,000t, which amounts to cutting more than 91,000 t/yr of carbon emissions. The operational date of this project was not disclosed. SP in May entered a strategic alliance with Shanghai-based CMB Financial Leasing to obtain financing services, which is expected to reach up to 8bn yuan ($1.13bn) over the next three years, to support the firm's deployment of renewable energy solutions in China. The projects will span utility-scale solar farms, distributed solar photovoltaic, energy storage, and district cooling and heating. By Joey Chan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Egypt’s Egas seeks LNG over October-December
Egypt’s Egas seeks LNG over October-December
Singapore, 6 September (Argus) — Egypt's state-owned gas firm Egas is seeking 20 spot cargoes for delivery over October-December through a tender that will close on 12 September. The firm is seeking 17 deliveries to Ain Sukhna, and three deliveries to Jordan's 3.8mn t/yr Aqaba import terminal. Egas was last in the market to seek up to five cargoes for delivery over August-September , through a tender that closed on 29 July. This tender was likely fully awarded at an average of a $1.50/mn Btu premium to the Dutch TTF, possibly to TotalEnergies, Gunvor and BP, traders said. Traders in mid-August estimated that Egypt would seek about eight to 15 spot cargoes for winter. Its latest requirement for 20 cargoes may indicate that the country's demand for imports is leaning towards the higher end. Egypt's appetite for spot cargoes is likely to remain, particularly as domestic gas production in the country has been falling. Gas production in Egypt fell to its lowest for seven years in June , the country's latest submission to the Joint Organisation Data Initiative (Jodi) show. At the same time, its pipeline gas deliveries from Israel have been hit with uncertainty since the start of the Israel-Gaza conflict. Pipeline deliveries from Israel to Egypt fell to 731mn m³ in June from 851mn m³ in May, having reached record highs earlier this year. LNG exports from Egypt this winter are "not very likely" , Italy's Eni said back on 26 July. By Rou Urn Lee Egas tender delivery windows Delivery to Ain Sukhna, Egypt Delivery to Aqaba, Jordan 4-5 October 2024 16-17 October 2024 9-10 October 2024 21-22 November 2024 14-15 October 2024 23-24 December 2024 19-20 October 2024 24-25 October 2024 29-30 October 2024 8-9 November 2024 13-14 November 2024 18-19 November 2024 23-24 November 2024 28-29 November 2024 3-4 December 2024 9-10 December 2024 15-16 December 2024 21-22 December 2024 27-28 December 2024 31 December 2024 - 1 Jan 2025 Source: Egas Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Pemex unbilled debts to suppliers climb
Pemex unbilled debts to suppliers climb
Mexico City, 5 September (Argus) — Service providers for Mexico's Pemex are unable to submit new invoices for services performed nearly a year ago even as the state-owned company also struggles to pay down past bills, sources say. These unsubmitted invoices do not appear in Pemex's financial records or in its monthly supplier debt reports, three Pemex suppliers who work mostly in the northern region of the Gulf of Mexico told Argus . Pemex provides vendors a system to submit bills for review and processing, leading to an invoice codifying payments and discounts (Copades). At this stage, Pemex certifies the pending invoice, making it part of the company's monthly supplier report —a transparency measure implemented in 2021. Pemex reduced its overdue debts to service providers by 6pc from May-July, with Ps126.4bn ($6.78bn) in unpaid invoices as of 31 July, down from Ps133.9bn in May. But a significant amount of unbilled work remains because Pemex has not issued the necessary Copades for vendors to begin the payment process, and some of the bills date back to work performed in September, according to two of the vendors. Without the Copades, companies must classify these debts as uncollectible, one vendor said. The issue is concentrated in Mexico's northeast maritime region, where Pemex produces about half of its crude and gas output, according to the vendors. This region includes the Cantarell and Ku-Maloob-Zap fields. Pemex has requested vendors to perform tasks in the area, but the company then claims there is no budget allocated for those bills, the vendors said. This unbilled work adds to Pemex's recognized debt to suppliers, but the size of this unrecognized debt is impossible to estimate, the vendors added. Pemex's unpaid invoices and short-term vendor debts stand at record-high levels, despite receiving over $70bn in government support since 2019. By Edgar Sigler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Roadblocks across Colombia cut LPG supply
Roadblocks across Colombia cut LPG supply
Bogota, 5 September (Argus) — Colombia's LPG shortages are worsening as a fourth day of protests and roadblocks over higher diesel prices are limiting production and distribution. Protesters have completely blocked roads to processing plants in the key Cusiana and Cupiagua fields, preventing trucks from moving supply. Those two fields along with the Ty Gas processing plant handle 41pc of the country's LPG supply, LPG association (Agremgas) director Sara Velez told Argus . Colombia uses about 60,000 metric tonnes (t)/month of LPG. The Cusiana plant that produces about 15,000t/month of LPG is flaring 100t/d of LPG that cannot be transported, Velez said. "If Cusiana is unable to move out the LPG, it may force it to shut in, affecting natural gas as well," Velez said. Blockades are also preventing LPG produced at the 250,000 b/d Barrancabermeja and the 200,000 b/d Cartagena refineries from reaching distributors. The refineries produce 24pc of the country's LPG supply, equivalent to 14,400t/month. Adding to troubles, multiple rebel attacks have put sections of the country's 220,000 b/d Cano Limon-Covenas and the 120,000 b/d Bicentenario crude pipelines out of service for repairs, restricting crude supply to the refineries. The smaller LPG field of Capacho controlled by Canadian oil company Parex shut in 5,000 b/d of oil equivalent (boe/d), or about 10pc of its Colombian output. That reduced LPG supplies to the Arauca department, the LPG association added. The departments of Caqueta, Cundinamarca and Valle del Cauca have inventories for four days. Another 28 departments have LPG inventory for one or two days. Velez has called on the government to create a safe corridor to help LPG reach consumers. The LPG shortage is also affecting industries. Fenavi, the country's poultry association, consumes 42mn kg/yr of LPG, which is equivalent to state-controlled Ecopetrol's monthly LPG production. The LPG is used to warm the poultry, but the association also said that blockades have also cut supplies of feed and could put the chickens at risk of starvation. The country produces 1.8mn tonnes/yr of chickens and 1.6bn eggs/yr. In Colombia 1.2mn families already still cook with wood, and the current shortage will likely increase that number. By Diana Delgado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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